New Work SE — Investor Presentation 2013

Aug 6, 2013

XING – #1 Professional Social Network In German Speaking Europe

Q2 results

August 6, 2013

Continued member growth in core region Lot of scope still available for further growth in D-A-CH

Paying subscriber base growing

Accelerating top-line growth in Q2/13

Launch of "New profile" – Career portfolio (2)

XING Talent Manager continues to beat internal expectations

Provides more information and transparency to applicants

• Employer ratings increase relevance of job applications
• Information about your connection to the company
• Direct access to HR

kununu was successfully integrated at the end of Q2 Team in Vienna selling "Employer Branding Profiles" since May 2013

Q2/2013 figures

The professional network www.xing.com

Executive summary – Financials

Member base and activity continue to grow

Revenue growth is accelerating to 15% yoy

EBITDA increasing to €5.9m

Operating cash flow at €6.9m

kununu with positive impact on EBITDA and CF

Q2/13: €20.9m revenues, €5.9m EBITDA

	Q2/13	Q1/13	Q2/13 vs. Q1/13	Q2/12	Q2/13 vs. Q2/12
	Abs.	Abs.	%	Abs.	%
Total revenue1	20.9	19.6	7	18.2	15
Costs	(15.0)	(14.3)	(5)	(13.1)	15
EBITDA	5.9	5.3	10	5.1	15
Margin	28%	27%	1%pts	28%	0%pts
Depreciation (incl. PPA)	(1.9)	(2.3)	16	(2.1)	7
Financial result	0.0	0.0	(23)	0.1	(77)
Taxes	(1.3)	(1.1)	(19)	(1.1)	(19)
Net result	2.7	2.0	35	2.1	30

(1) Including other operating income

Member base and member activity continue to grow

Q2/2013: e-recruiting and events with accelerating growth rates

Personnel main investment area to further drive company growth

Personnel

in €m in % of total revenue

• Investment in product/technology
• organization & sales/marketing
• 6 new FTEs in Q2/13
• 39 new FTEs since Q2/12

Marketing

in €m in % of total revenue

• Q2/12 Q1/13 Q2/13
• Online display & social media adv.
• Search engine marketing (SEM)
• Offline marketing expenditure (conferences & events, print, sponsoring)
• Affiliate marketing

Other expenses

in €m in % of total revenue

Q2/12 Q1/13 Q2/13

• External services, legal, audit & consulting
• Payment processing, server hosting
• Rent & other costs

YoY cost development reflects first-time consolidation of kununu

Q2/2013: Operating cash flow: €6.9m

	Q2/13	Q1/13	Q2/13 vs. Q1/13	Q2/12	Q2/13 vs. Q2/12
	Abs.	Abs.	Abs.	Abs.	Abs.
EBITDA	5.8	5.3	0.6	5.1	0.8
Interest/tax/ESOP	(1.2)	(1.1)	(0.1)	(0.8)	(0.4)
Net working capital	2.3	2.2	0.1	(0.4)	2.7
Operating cash flow excl. organizer cash	6.9	6.4	0.6	3.9	3.1
Investment – operating	(2.7)	(1.8)	(0.9)	(2.3)	(0.4)
Investment – acquisitions	(0.1)	(2.9)	2.8	0.0	(0.1)
Financing incl. transaction of own shares	1.7	0.0	1.7	1.7	0.0
Free cash flow excl. organizer cash & dividends	5.9	1.7	4.2	3.3	2.5
Regular dividends	(3.1)	0.0	(3.1)	(3.0)	(0.1)
Free cash flow excl. event organizer cash & incl. dividends	2.8	1.7	1.1	0.3	2.5
Effects organizer cash	0.0	1.0	(1.0)	(0.3)	0.4
Free cash flow incl. organizer cash & dividends	2.8	2.7	(0.1)	(0.0)	2.8

Thank you for your kind attention!

The professional network www.xing.com

Negative invested capital from shareholders' perspective

in €m [Excl. event organizer cash and NWC]

	As of June 2013
	Abs.
Assets	105.0	Operating assets	€26.2m
Operating assets	26.2	Deferred income	(€30.6m)
Acquisitions / international	16.6
TAX A/R	1.6	Liabilities	(€15.9m)
Cash	60.7	Invested capital	(€20.3m)
Equity/Liabilities	105.0	w/o cash
Equity	55.1
Deferred income	30.6
Liabilities	15.9
Tax liabilities	3.4
Other	0.0

Investor information & contact

The professional network www.xing.com

XING AG IR stats Market cap: ~€320m / >€60m cash / no debt

	Consensus from 9 brokers	2013e	2014e	2015e	Average trading volume per day (XETRA)
3)	Total revenues	82.7	93.2	102.1	21		[in thousand]
	EBITDA	23.9	29.9	35.5
mates as of August 5, 201 s u	Margin	29%	32%	35%	15		15
s n	Depreciation	-8.4	-8.6	-8.5		12
e s	EBIT	15.5	21.3	27.0	12 10
n o	Margin	19%	23%	26%	6 6	7 7 7
C	Net income	10.9	15.0	19.3	4		3
Analyst esti	EPS in €	1.98	2.72	3.48
(	DPS in €	0.70	0.87	1.33
					July 12 Sep-12 Nov-12 Jan-13	Mar-13 May-13	Jul-13
Berenberg Bank, Commerzbank, Close Brothers, Deutsche Bank, Analyst coverage JP Morgan Cazenove, MM Warburg, Montega			Burda Digital GmbH	2,922,244	52.37%
			Hauck & Aufhäuser,		DWS Investment	361,000	6.47%
		Ennismore	293,622	5.26%
	Shares 5,580,252		Schroders	282,421	5.06%
					Ruane, Cunniff & Goldfarb	169,259	3.03%
TecDax	ranking end of July 2013				Treasury Shares	37,832	0.68%
Market Cap. 31		Other	1,513,872	27.13%
Turnover		34

Numbers based on last filing – actual shareholdings can differ

XING share price development since IPO in Dec 06 as of August 5, 2013

Investor Relations

Contact details & social media channels

Patrick Moeller

Director Investor Relations

XING AG Dammtorstraße 29-32 20354 Hamburg Germany

Tel.: +49 (0)40 419 131-793 Fax.: +49 (0)40 419 131-44 (Please use this number to submit "WpHG notifications")

Email.: patrick.moeller@xing.com

IR website: http://corporate.xing.com/english/investor-relations/